Indian Firms Fight Fiercely with Global Peers Over Large Outsourcing Deals

Indian outsourcing firms such as Cognizant and Wipro captured nearly a quarter of the top 100 outsourcing deals in 2014, according to a study by research firm IDC.

Despite being small in size compared to their American peers, Indian BPO providers are proving strong competitors for large outsourcing deals. To strength their hand they are putting forward new offerings such as cloud and hosting services.

Analysts say that investing in more transformative capabilities in areas such as analytics, social media, and mobility, and enhancing strategic local capabilities and resources, have enabled them to compete successfully with well-established players.

Leveraging the offshore business model has also contributed greatly to their success, according to David Tapper, IDC’s Vice President, Outsourcing and Offshore Services.

According to IDC’s data, Indian outsourcing companies represented more than 50% of the total contract value of the top 100 outsourcing deals in 2014. In 2013, by comparison, they represented 43% of the total contract value.

Globally, the top five vendors – who include the likes of IBM and CGI – have continued to snap up nearly 50% of high-valued outsourcing deals. With US$13.8 billion worth of deals, IBM tops the list. CGI is ranked second, though the value of the contracts ($2.8 billion) it won is considerably lower.

Indian firms Cognizant and Wipro are quickly catching up with CGI, having won contracts worth $2.7 billion and $2.3 billion respectively.

Sign up for our Nearshore Americas newsletter:

The research firm says the number of mega deals is currently shrinking, as are the number of government contracts. Furthermore, very few providers are competing for mega deals, partly due to a belief that large deals can be very complicated to implement.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

You may also like

Around six million households in Latin America and the Caribbean will not receive remittances this year due to the global economic crisis triggered by the COVID-19 pandemic. The worst-hit would be Central AmericanRead more

Most of the countries in Latin America are gradually reopening their economies, although the number of people infected with coronavirus is rising in some countries, particularly in Brazil. A large majority of countriesRead more

Open banking platform Belvo has raised US$10 million, as it gets ready to capitalize on the growing demand for digital payment services in Latin America. The fintech says it will use the proceeds to open an office inRead more